Diluted earnings per share: Difference between revisions
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imported>Doug Williamson (Create the page from Earnings per share page and IAS 33 summary Deloitte IAS Plus http://www.iasplus.com/en/standards/ias/ias33) |
imported>Doug Williamson (Typo correction IAS 33.) |
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'Dilution' is defined for financial reporting purposes in IAS | 'Dilution' is defined for financial reporting purposes in IAS 33 as: | ||
A reduction in earnings per share resulting from the assumption that: | A reduction in earnings per share resulting from the assumption that: | ||
Revision as of 16:49, 26 October 2014
(Diluted EPS).
'Basic' earnings per share are calculated as:
Profit attributable to ordinary shareholders ÷ Weighted average number of shares in issue during the period.
'Diluted' earnings per share are calculated by adjusting the earnings and number of shares for the effects of 'dilution' of the current ordinary shareholders' entitlements.
'Dilution' is defined for financial reporting purposes in IAS 33 as:
A reduction in earnings per share resulting from the assumption that:
- Convertible instruments are converted,
- Options or warrants are exercised, or
- Ordinary shares are issued upon the satisfaction of specified conditions.
